Article 50 Digital Operational Resilience Act (DORA), Exercise Of The Delegation
Article 50 of the Digital Operational Resilience Act (DORA) outlines the framework under which the European Commission is granted the authority to adopt delegated acts. Delegated acts are a crucial tool in European Union (EU) law, allowing the Commission to refine or update certain non-essential elements of legislation without the need for a full legislative procedure. This article specifies the conditions and processes that govern the exercise of this delegation of power, ensuring a balanced approach that maintains oversight by the European Parliament and the Council.
Delegation of Power to the Commission
The power to adopt delegated acts is conferred on the European Commission subject to the conditions set out in Article 50. Specifically, this delegation applies to the provisions referred to in Articles 28(3) and 38(2) of DORA. These articles pertain to specific areas where the Commission may need to make technical adjustments or provide further detail to ensure the effective implementation of the regulation.
The delegation of power is granted for a fixed period of five years from a specified date, which is five years after the regulation's entry into force. This time-limited delegation ensures that the power to adopt delegated acts is reviewed and reassessed periodically, providing a mechanism for accountability and oversight.
Revocation of Delegated Power
Article 50 also provides for the possibility of revoking the delegation of power. This revocation can be initiated at any time by either the European Parliament or the Council. The decision to revoke the delegation of power is a significant safeguard, ensuring that the Commission's authority to adopt delegated acts remains subject to the political control of these two key institutions.
When a decision to revoke is made, it takes effect the day following its publication in the Official Journal of the European Union, or on a later date specified in the decision. Importantly, the revocation does not affect the validity of any delegated acts that have already entered into force. This ensures legal certainty and continuity, preventing disruptions to the implementation of the regulation.
Consultation with Experts
Before adopting any delegated act, the Commission is required to consult experts designated by each Member State. This consultation process is in line with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. The involvement of national experts ensures that the delegated acts are informed by a broad range of perspectives and expertise, reflecting the diverse regulatory environments across the EU.
This consultation is a critical step in the process, as it allows for the incorporation of technical knowledge and practical experience from Member States, thereby enhancing the quality and effectiveness of the delegated acts. It also ensures transparency and inclusiveness in the decision-making process, fostering trust and cooperation between the Commission and Member States.
Notification and Entry into Force of Delegated Acts
Once the Commission adopts a delegated act, it must notify the European Parliament and the Council simultaneously. This notification is a formal requirement that triggers the process for the delegated act to enter into force.
The delegated act will only become effective if no objections are raised by either the European Parliament or the Council within a two-month period following the notification. This period can be extended by an additional two months at the initiative of either institution. This procedure ensures that both the Parliament and the Council have sufficient time to review the delegated act and assess its implications.
If neither institution objects within the stipulated timeframe, or if both institutions inform the Commission that they will not object, the delegated act enters into force. This process provides a critical check on the Commission's power, ensuring that the adoption of delegated acts remains subject to democratic oversight.
Balancing Flexibility and Oversight
Article 50 of DORA strikes a careful balance between granting the Commission the flexibility to adopt necessary technical adjustments and ensuring robust oversight by the European Parliament and the Council. The delegation of power is not absolute; it is subject to clear conditions, including time limits, the possibility of revocation, and mandatory consultation with experts.
The consultation process and the requirement for notification to the Parliament and the Council are vital components of this balance, ensuring that the adoption of delegated acts is both informed and transparent. The ability of the Parliament and the Council to object to a delegated act provides a powerful mechanism for political control, ensuring that the Commission's actions align with the broader legislative intent.
Conclusion
Article 50 of the Digital Operational Resilience Act (DORA) establishes a comprehensive framework for the exercise of delegated powers by the European Commission. It ensures that the Commission can efficiently implement and update the regulation while maintaining accountability and oversight. The article reflects the EU's commitment to effective governance, transparency, and the protection of democratic processes in the exercise of regulatory power. Through this carefully structured approach, DORA aims to enhance the digital operational resilience of the financial sector while respecting the principles of better law-making and the balance of power within the EU.
